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US-based t-shirts manufacturer Hanesbrands is set to reduce costs by closing a plant in Ponce, Puerto Rico.

The Ponce site, which currently makes fabrics for Hanesbrands’
t-shirts and underwear, will cease production by the end of January 2007.

Production will be moved to an existing lower-cost facility in the Caribbean basin, forming part of the firm’s long-term aim to globalise its supply chain.

“Moving production from Ponce to the Caribbean basin is necessary to improve Hanesbrands’ efficiency and competitiveness,” said Gerald Evans, the company’s executive vice president and chief global supply chain officer.

“As part of our multi-year supply chain improvement strategy, Hanesbrands is ramping up high volume, lower-cost production in new textile manufacturing facilities in central America and the Caribbean basin.”

Several month’s ago, Hanesbrands announced plans to close manufacturing plants in the US and Mexico in order to reduce costs.

Distribution centres in the US are also to be consolidated, while the firm plans to acquire a sewing facility near Bangkok in order to move towards a globalised supply chain.

The plant would be the t-shirt manufacturer’s first fully-owned production plant in Asia.